As a general rule, the schedule of effective lives accompanying IT 2685 should be used for depreciating assets acquired or started to be constructed before 1 January 2001. The schedule accompanying TR 2000/18 should be used for depreciating assets acquired or constructed on or after 1 January 2001.

Because the Commissioner often reviews his determinations of effective life, more than one determination might be in force during an income year. You generally adopt the determination that is in force at the time you enter into a contract to acquire an asset, you otherwise acquire it, or you start to construct it. However, if the asset's start time does not occur within 5 years of this time, you must use the determination that is in force at the asset's start time. For a depreciating asset acquired under a contract or otherwise, or started to be constructed before 11.45 am (by legal time in the ACT) on 21 September 1999, there is no restriction on the period within which the asset must be first used.

Note

IT 2685 contains depreciation rates-accelerated rates and broadbanded rates-which should only be used for plant that was acquired before 21 September 1999 or by certain small business taxpayers before 1 July 2001-see Accelerated depreciation.

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